Reference: 19_03
Scavenger Company, a Manufacturer of Recycling Bins, Began

Multiple Choice

Reference: 19_03
Scavenger Company, a manufacturer of recycling bins, began operations on January 1 of the current year. During this time, the company produced 60,000 units and sold 55,000 units at a sales price of $15 per unit. Cost information for this year is shown in the following table:

$\begin{array}{ll}\text { Production costs } & \\\quad \text { Direct materials } & \$ 2.50 \text { per unit } \\\text { Direct labor } & \$ 3.00 \text { per unit } \\\text { Variable overhead } & \$ 45,000 \text { in total } \\\quad \text { Fixed overhead } & \$ 240,000 \text { in total } \\\text { Nonproduction costs } & \\\quad \text { Variable selling and administrative } & \$ 10,000 \text { in total } \\\text { Fixed selling and administrative } & \$ 50,000 \text { in total }\end{array}$


-Given the Star Services,Inc.data,what is net income using absorption costing?

A) $18,670,000
B) $18,774,000
C) $16,360,000
D) $11,275,000
E) $11,170,000